REAL Demands Robust Action on Resource Policy -Cites Failed Concession Agreements, Laments Widespread Poverty

MONROVIA – For decades, Liberia’s rich natural resources have been a blessing and a curse. While the country’s wealth in iron ore, diamonds, and other minerals has the potential to drive economic growth and development, it has instead become a source of poverty, inequality, and exploitation for many Liberians. The Resource Equity Alliance of Liberia (REAL), taking cue from this backdrop, is calling for a fundamental change in the way Liberia’s resources are managed, arguing that the current system is broken and perpetuates a cycle of poverty and exploitation. As THE ANALYST’S H. MATTHEW TURRY reports, REAL is advocating for a new framework that prioritizes the interests of Liberians and ensures that the country’s resources are used to drive sustainable development and prosperity for all.

The Resource Equity Alliance of Liberia (REAL), a transnational coalition of diaspora leaders, activists, and scholars, is calling for a complete overhaul of Liberia’s entire resource management system, including all concessions, past, present, and future. REAL seeks to strengthen Concession Companies Social Development Funds and Liberia’s equity share.

According to REAL Executive Director Morris Kiazolu, Liberia’s decades of resource extraction reveal a troubling pattern. “Liberia’s rich natural resources have been poorly managed, leaving everyday Liberians in poverty while foreign interests and elites benefit the most,” Kiazolu said.

“The gap between our country’s wealth and our people’s poverty directly results from concession agreements that have failed our nation.”

REAL cited the Bea Mountain Mining Corporation (BMMC) as an example of this pattern of abuse.

A 2024 investigation by the Liberian Legislature found “massive violations” and non-compliance, including foreign nationals performing jobs reserved for Liberians and an unfinished TVET school. Based on these findings, REAL requests that the 25-year extension granted to BMMC be revoked.

The group also expressed concerns about the current dispute over the Yekepa-to-Buchanan railway, describing it as a “high-stakes corporate and geopolitical battle” that exposes Liberia to expensive arbitration. REAL advocates for a new framework for all future concessions inspired by countries that have successfully transformed resource wealth into national prosperity, such as Botswana.

REAL proposes a new framework for all future concessions that includes a 50/50 joint venture for all significant concessions, providing the Liberian state with a seat on the board, decision-making authority, and a direct 50% share of profits. The group believes this arrangement can be used to fund the national budget, education, and healthcare.

To address the “resource curse” and protect Liberia from “boom and bust” cycles, REAL recommends creating a National Stabilization and Savings Fund, modeled after Chile’s successful Economic and Social Stabilization Fund (ESSF). Part of this fund should be set aside as a Sovereign Wealth Fund, serving as a savings account for future generations.

REAL calls on the Legislature to revoke BMMC’s 25-year extension and initiate a forensic audit. The group also demands an investigation into the 15% equity dilution in ArcelorMittal, which was carried out without public consultation or legislative involvement. REAL describes this act as a clear example of systemic failure and the “resource curse.”

The group urges the Executive Branch to resolve the “Two-Contract” Crisis by quickly and transparently explaining the legal status of the conflicting AML and HPX/Ivanhoe contracts.

For all future concessions, REAL recommends the adoption of a People-Focused Mining Code that codifies the Botswana and Chilean models. This new law should include mandatory 50/50 equity ownership in all strategic resource concessions, a new fiscal regime with a minimum compulsory royalty of 30% on gross revenue and a windfall profits tax, and independent Community Development Funds to ensure concession areas serve as catalysts of local development.

“The people of Liberia are alert, organized, and tired of broken promises,” REAL concluded. “We will not stand by and watch another generation be left behind while our resources are exploited in deals that benefit everyone except the Liberian people.”